Indonesia to set up holding firms to consolidate state enterprises

[Indos]

JAKARTA (TheInsiderStories) – State Own Enterprises (SOEs) ministry will set up holding companies for energy, mining, finance and toll road in first semester (H1) of 2016. This year, the ministry targeting to set up six holdco for toll Roads, construction and engineering, real estate, oil and gas, mining and financial.

In four year terms, the ministry will set up holding company for mining, shariah bank, general insurance, reinsurance, venture capital, ship yard, port fishery, Information & technology, air service and electronic.

Minister for SOEs Rini Soemarno explained, that establishing holdco by sector would be prioritized first, adding that if there were companies with multiple assets such as hotels or other non-core assets, the ministry would begin allocating those assets to the relevant holding company so they could be more efficient.

According to her, the ministry has appointed PT Bahana Securities, PT Mandiri Sekuritas and PT Danareksa Sekuritas to assess the planned formation of six holding company (holding) SOEs and can be completed in one month.

“We expect the holding company would increase efficiency and provide better leverage for the companies to increase external funding in a bid to support the government’s massive infrastructure projects,” the minister Rini Soemarno told reporters.

She elaborates more, oil & gas firm PT Pertamina and gas distributor PT Perusahaan Gas Negara Tbk (IDX: PGAS) will under holdco energy. While aluminium producer PT Indonesia Asahan Aluminium (Inalum) will become holdco for mining business like PT Aneka Tambang Tbk (IDX: ANTM), PT Tambang Bukit Asam Tbk (IDX: PTBA) and PT Tambang Timah Tbk (IDX: TINS).

Investment firm PT Danareksa (Persero) will become holding company for financial companies such as PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bank Mandiri Tbk (IDX: BMRI), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Bank Tabungan Negara Tbk (IDX: BBTN), pawnshop firm Perum Pegadaian and venture capital firm PT Perusahaan Nasional Madani.

http://rencanatrading.com/2016/04/1...mining-financial-and-toll-road-holding-in-h1/

Rni Soemarno (State Own Enterprises Minister) with PT Pindad rifle and excavator

 

[Indos]

More info about Indonesian state owned enterprises reform. I think it is similar like 2030 Saudi economic vision for the Indonesian case, as for Indonesia we try to make the state enterprises to expand our economy than becoming a big cash provider for the yearly government budget as it has been doing for so long.

http://www.wsj.com/articles/indonesia-makes-play-for-infrastructure-investment-1425592554

Indonesia Makes Play for Infrastructure Funding
Government pours cash into state firms; investors are doubtful

ENLARGE
A worker at a port project in North Jakarta in January. PHOTO: REUTERS
By
BEN OTTO in Jakarta and

JAKE MAXWELL WATTS in Singapore
March 5, 2015 4:55 p.m. ET
0 COMMENTS

Indonesia’s president wants to pour billions of dollars into state-owned firms to encourage the private sector to invest in infrastructure. Investors have their doubts.

Last month, as part of his administration’s first budget, Mr. Widodo announced that the government is investing a record $22 billion in infrastructure projects. He said the government will also inject $3 billion directly into state firms, most of it for companies under the ministry for state-owned enterprises that are involved in infrastructure development.

Mr. Widodo, who came into power with a mandate to reform the country late last year, is hoping to do what past leaders have struggled to achieve: build up the ports, power plants and roadways the archipelago nation needs to usher in a new age of manufacturing and competitiveness.

To succeed, the president will need private-sector help. Officials hope firms will either partner with companies like PT Waskita Karya, one of the country’s largest construction firms, and airport operator Angkasa Pura II, or invest in bonds and shares they plan to sell.

Like most Asian governments, Indonesia has always propped up state firms, but this is the first time it has laid out a specific plan of this scale to dress the companies up. Tom Lembong, who advises Mr. Widodo on economic policy, called the $3 billion capital-injection plan “revolutionary” but conceded the amount isn’t huge.

“It sends a strong signal: The government will inject money beside private investors,” Mr. Lembong said, adding that it will help turn the country’s state firms from “being a milking cow to being a proactive agent for development.”

ENLARGE
Indonesia’s state firms have always been a big source of dividends for the government, but under Mr. Widodo, those companies will be able to keep the money, as long as funds go into infrastructure. Revenues at state-owned companies are equivalent to almost a fifth of the country’s nearly $900 billion gross domestic product.

Still, investors question the plans, citing fear about corruption and failures to complete previous projects in Southeast Asia’s biggest economy.

“We will wait to see what will happen, because execution [of infrastructure plans] has been quite poor in the past,” said Bharat Joshi, head of Indonesia investments atAberdeen Asset Management, which manages about $4.5 billion in Indonesia and owns shares in some state-controlled companies.

He said the fund manager is currently investing in state firms that could benefit from infrastructure development through lower logistics costs, for example, but is avoiding companies directly exposed to the process, such as construction firms. “If the infrastructure investment accelerates, that would be a multiplier for more consumption spending,” he said. “But we are not really betting on infrastructure happening.”

Delays in areas such as the acquisition of land are common, and the overall track record for completing construction projects is poor.

The capital injection “has provided some confidence, but it is not a major factor yet” in creating confidence in investing in Indonesia, said Ivan Chamdani, head of research at Trimegah Asset Management in Jakarta.

The worry, say many investors, is that the less efficient of the state-owned beneficiaries of the government’s largess, some of whom have had problems with fraud or corruption, will squander the funds. Some firms face “audit problems,” Mr. Chamdani said.

“The missing piece in this strategy is how the capital injections will be used to incentivize [state-owned enterprises] to accelerate reforms and ensure no leakages,” Nomura Holdings Inc. said in a recent note.

More than half the $3 billion will go to six companies, including Jakarta-listed state construction firm PT Adhi Karya. The company, which was in the spotlight last year after a director was imprisoned for corruption, will be getting a 1.4 trillion rupiah ($108 million) injection from the government. Adhi Karya, which is building mass-transport projects around the capital, including the country’s first monorail, told The Wall Street Journal it is looking to raise up to 10 trillion rupiah. More than 80% will come from private investors via a rights issue and sources that may include bank loans and bonds.

Adhi Karya’s shares have fallen 4.2% since parliament approved the government injection, while the benchmark Jakarta Stock Exchange is up 1.4%.

Angkasa Pura II, which is getting two trillion rupiah from the government, plans to raise as much as six trillion rupiah from the sale of bonds in the next two years. It is working to triple passenger capacity at the third terminal of Jakarta’s main airport, according to Budi Karya Sumadi, the company’s president director.

PT Jasa Marga, a publicly traded toll-road operator that didn’t request government money this year, is also looking to tap the local market through a possible rights issue if it wins contracts to build and operate new toll roads, the state-owned company said in a statement to the Indonesia stock exchange.

To be sure, the government is planning to offer a host of multibillion-dollar projects to the private sector that could generate more interest, even if investors don’t want to be involved with state-owned firms.

And investor confidence in Indonesia has surged since Mr. Widodo took power.

The country’s benchmark stock index is at a record, and government-bond yields are near their lowest since June 2013, largely because foreign investors have piled in, sending their holdings of Indonesian assets to record levels and indicating confidence in the government’s ability to service its debt.

But although the $22 billion the government is putting into infrastructure is 53% more than was allocated last year, it falls short of the more than $80 billion the administration says the country needs each year to improve its infrastructure. The history of spending, as opposed to planned outlays, has also been weak.

“Past disbursement has always fallen short of allocations,” Chua Hak Bin, an economist at Bank of America Merrill Lynch, wrote in a research note.

Write to Ben Otto at ben.otto@wsj.com and Jake Maxwell Watts at jake.watts@wsj.com

 

[Indos]

Indonesia govt plans to form holding company for state banks by 2018
JAKARTA | BY CINDY SILVIANA
Feb 16

The Indonesian government plans to form a holding company that will own shares in all of the country's state-controlled banks by 2018 in a bid to make lenders more efficient and boost equity, an official at the state-owned enterprises ministry said at a briefing on Tuesday.

Deputy minister Gatot Trihargo said the government wants to set up an investment firm to work as the holding company for some of Indonesia's biggest banks. Among those involved will be Bank Mandiri, Bank Rakyat Indonesia, Bank Negara Indonesia and Bank Tabungan Negara.

"With a holding company, we can strengthen recurring income," Trihargo told reporters on Tuesday. The ministry will either choose an existing state investment firm as the holding company, such as Danareksa, Bahana Securities or Perusahaan Pengelola Aset, or create a new firm altogether, he added.

The plans come as President Joko Widodo's administration steps up efforts to better manage state firms, drawing up plans to create a holding company for each sector where it has more than one firm, such as pharmaceuticals, mining and insurance.

Jakarta has also said it will privatise four fully owned state firms, including heavily indebted carrier Merpati Nusantara Airlines, through strategic sales.

Banks in Indonesia, Southeast Asia's largest economy, manage capital risks well, according to the country's central bank, with an average capital adequacy ratio at 21.1 percent as of November 2015, but are small compared to peers in neighbouring countries.

The country's banking regulator and the central bank have both been pushing for banks to merge to shore up equity. The regulators want to halve the number of banks operating across the archipelago from around 120.

But Trihargo said the government will drop a plan to merge all state sharia banks, and opt to look for investors from the Middle East to partner with those banks. (Writing by Gayatri Suroyo; Editing by Kenneth Maxwell)

http://www.reuters.com/article/indonesia-banks-idUSL3N15V2C1

 

[Indos]

Joint Venture within state owned enterprises

Actually it is an old story 2012 story


Pertamina-LEN Develop Solar Photovoltaic Industry

PT LEN Industry

JAKARTA – PT Pertamina (Persero) cooperates with PT LEN Industri realizing solar photovoltaic (PV) industry as the company’s commitment to increase the contribution of renewable energy in national energy mix, which is along with the vision of the company as the World Class Energy Company. The synergy of both State-Owned Enterprises (BUMN) was signed by the signing of Memorandum of Understanding (MoU) for the establishment of joint venture to build an integrated solar PV plant between Pertamina and LEN in Jakarta today.

The cooperation hopefully could increase the growth of solar power plant utilization in the country that only reached approximately 17 MWp (megawatt peak) or 0, 05% of the total existing power plants. Solar PV is the right solution to increase national electrification, especially to reach islands in Indonesia that are not connected to electricity network and natural contour making difficult to deliver fuels for generators/genset. Besides, the market potency of solar PV in domestic is also quite high, both for street lightning, airport lightning, infrastructure, housings and offices, and also for BUMN and private sectors’ CSR. “The Government through Presidential Decree Number 5/2006 promoted 0, 2-0, 3% in national energy mix by 2025 are coming from solar power or equivalent to 1.000 MWP. This means that it needs 65 MWp more per year.

Based on the vision, Pertamina gives more concern to the acceleration of integrated solar PV industry development, in this case is by cooperating with LEN Industri,” said the President Director of Pertamina, Karen Agustiawan. Through the cooperation of both companies, the business chain of national solar PV industry will be completed from upstream to downstream. Currently, the national solar PV industry is only producing module and system. Meanwhile solar cell, which is the main component, is still imported with a quite expensive price. “The existence of solar PV industry could increase the renewable energy utilization and the autonomy of national solar energy industry, the technology capability, new job opportunities, and trigger economic growth,” said Karen. (AK)

ww.esdm.go.id/berita/83-energy/5833-pertamina-len-develop-solar-photovoltaic-industry-.pdf

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It is a new one:

Google translate with some editing

Len and Pertamina Signs Cooperation in Solar Power Plan Project

Jakarta (03/28/16) - PT Pertamina took PT Len Industries and two other state-owned enterprises to build a number Solar Power Plant (SPP) projects in the development of new renewable energy (EBT). It will use the untapped lands owned by state-owned Pertamina and other state owned enterprises.

Director of Technology and Production Len, Darman Mappangara (2nd from right) and Director of Gas, New & Renewable Energy Pertamina, Yenni Andayani signed an agreement for solar power plants, the government has targeted the installed capacity of 5 GW or 5,000 megawatts (MW) in 2020. Pertamina is committed to contribute to building a 1,000 MW solar power.

The synergy also involving two other state-owned companies namely PT Energy Management Indonesia (EMI) and PT Sarana Multi Infrastruktur

http://www.len.co.id/

 

[Indos]

Another joint venture

PT Antam (Persero) Tbk

ANTAM & INALUM Sign Joint Venture Agreement(JVA) on the Development of Smelter Grade Alumina Refinery (SGAR) Plant
Home

News, Reports and Presentations

News Releases


Jakarta, April 14, 2016 - PT ANTAM (Persero) Tbk (ASX: ATM; IDX: ANTM; ANTAM) and PT Indonesia Asahan Alumunium (Persero) (INALUM) are pleased to announce the signing of the Joint Venture Agreement (JVA) on the development of Smelter Grade Alumina Refinery (SGAR) Plant. Following the signing of the agreement, ANTAM and INALUM will form a joint venture company, PT INALUM ANTAM ALUMINA. The signing of the JVA follows the Memorandum of Understanding (MoU) and the Principles of Agreement (Heads of Agreement) between ANTAM and INALUM which were signed in 2015. The JVA was signed by ANTAM’s President Director, Tedy Badrujaman and INALUM’s President Director, Winardi Sunoto today in Jakarta.

ANTAM’s President Director, Tedy Badrujaman, said:
" The cooperation between ANTAM and INALUM is an important step in our effort to enhance the value of Indonesia’s vast bauxite reserves as well as supporting the synergy among SOEs. In the joint operations of the SGAR plant, ANTAM will provide bauxite ore feed from our bauxite mine. "

INALUM’s President Director, Winardi Sunoto, said:
" Our partnership with ANTAM will support the development of bauxite ore processing to produce Smelter Grade Alumina, the main raw material for INALUM’s aluminium smelting plant. Smelter Grade Alumina Refinery is one of the deveopment projects in our list. "

The cooperation between ANTAM and INALUM includes the investment and equity participation in the SGAR joint venture company which will be formed by the ANTAM, INALUM and strategic partner. The joint venture company line of business includes smelter grade alumina refinery and other agreed business activities.

The production capacity of SGAR is estimated at 2 million tons of SGA per year which will be built in stages with the first stage capacity of 1 million tons of SGA per year. Through the project ANTAM expects to process its vast bauxite reserves while INALUM expects to acquire alumina feed for aluminium processing from a domestic source, translating into lower dependency of alumina imports as well as benefiting from foreign exchange savings.

INALUM currently has an aluminium smelting capacity of 250,000 tons of aluminium ingots per year requiring a minimum of 500,000 tons of alumina feed per year. INALUM plans to increase its annual capacity to 500,000 tons of aluminium requiring 1 million tons of alumina feed per year in 2020 (twice the current consumption).

In the long term INALUM will continue to increase its capacity to meet the growing demand of domestic aluminium market. In developing a competitive and integrated aluminium industry, the new aluminium plant will be built close to the energy source as well as the SGAR plant. In phase 2 of the development of the smelter, the capacity is expected to reach 1 million tons of aluminium, requiring 2 million tons of SGA per year.

About ANTAM
ANTAM is a diversified, vertically integrated natural resources based company with nickel ore, ferronickel, gold, silver, bauxite, coal, alumina and precious metal processing and refinery services as its main business. It is one of Indonesia’s leading companies with more than 47 years of experience and has abundant reserves of high quality nickel and Bauxite. ANTAM’s Precious Metal Processing and Refinery Business Unit is Indonesia’s only precious metal processing and refinery entity with London Bullion Market Association (LBMA) certification. ANTAM is 65% government held and listed on the Indonesia and Australia securities exchanges.

About INALUM
INALUM is the pioneer and first in South East Asia company in the aluminium smelting business. It was established on 6 January 1976 as a joint venture company between the Indonesian Government and Nippon Asahan Aluminium Co. Ltd. On 19 December 2013, the Indonesian Government took over the Japanese consortium shares in INALUM and the company is currently wholly owned by the Indonesian government. INALUM’s 2025 vision is to become an environmentally friendly foremost global integrated aluminium-based company.

http://www.antam.com/index.php?option=com_content&task=view&Itemid=144&id=915

 

[Indos]

I will put some International awards taken by Indonesia's state owned enterprises

PT Angkasa Pura I

Bali Airport Receives Award for Most Improved Airport
SATURDAY, 23 APRIL, 2016 | 17:44 WIB

TEMPO.CO, Jakarta - Ngurah Rai International Airport in Bali has received two prestigious awards from the International Airport Council (ACI), namely: the most improved airport in 2015 award and the third airport with the best services in the world award.

"The award of the most improved airport refers to the quality of services that have successfully improved every year,” said General Manager of state-owned airport operator PT Angkasa Pura I of Ngurah Rai airport chapter, Trikora Harjo in Kuta, Badung Regency on Friday (22/4).

The two awards were given by ACI Director General ACI Angela Gittens to Harjo at a conference held by the ACI ni Gold Coast, Australia on 18-20 April 2016.

According to Harjo, the airport received a score of 2.95 for the quality of services it offered in 2012, and it has increased to 60.7 in 2015.

Besides receiving award for making remarkable progress in offering services to passengers, Ngurah Rai Airport also received an award for the third-best airport in the Asia-Pacific region in the category of airport handling 15-25 million passengers per year.

The Gimpo International Airport in Seoul, South Korea, was ranked first, and the second place went to the Wuhan Tianhe International Airport, China. The award was based on the votes received during the survey conducted by the Airport Council International (ACI) in terms of the airport service quality in 2015, while the satisfaction score for the quality of airport services was based on a survey of 550,000 passengers at 320 international airports in 80 countries.

https://m.tempo.co/read/news/2016/0...port-receives-award-for-most-improved-airport

 

[tsinga]

Its a good move.

 

[Indos]

Its a good move.

Now the ministry is lead by an entrepreneur and not technocrat anymore, usually entrepreneurs has more bold move like happening in our fishing ministry as well. Both are lead by female entrepreneurs. The positive effect has also been felt by our defense industry which mostly state owned

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Garuda Indonesia Cabin Crew Once Again Voted World’s Best Cabin Crew 2015

The World’s Best Cabin Crew” 2015 Award was presented by Skytrax during the Paris Airshow 2015
In line with Garuda Indonesia’s continuous service enhancement program, Garuda Indonesia’s cabin crew again was voted “The World’s Best Cabin Crew 2015” by Skytrax – a London-based, independent airline ranking agency. The award is the second consequtive year it has been won by Garuda Indonesia after previously in 2014, it won the same title, beating other leading world airlines.

“The World’s Best Cabin Crew 2015” award was presented on Tuesday, June 16, 2015 during the “The World Airline Awards 2015” and took place during the “Paris Airshow 2015” in Paris, France. The award was presented by the CEO of Skytrax, Edward Plaisted to Garuda Indonesia’s President and CEO, M. Arif Wibowo.

“The World’s Best Cabin Crew 2015” award was given to Garuda Indonesia based on a global customer satisfaction survey" conducted by Skytrax of more than 18 million passengers. The survey, which covers 245 international airlines, is held every year and measures standards across 41 key performance indicators of airline products and services.

Commenting on this honor, Garuda Indonesia President and CEO, M. Arif Wibowo expressed his delight with Garuda Indonesia’s most recent achievement, “The World’s Best Cabin Crew 2015” award.

“Garuda Indonesia’s success in winning the “The World's Best Cabin Crew" title once more in 2015 reflects the tireless hard work and deep commitment from everyone at Garuda Indonesia, in particular our cabin crew, to deliver service of the highest standard to our passengers. We would also like to thank our loyal passengers for continuing to support Garuda Indonesia hence enabling us to win the trust and “The World's Best Cabin Crew” award for the second consecutive year,” said Arif.

“By offering our unique “Garuda Indonesia Experience” service concept that emphasizes warm Indonesian hospitality and the best aspects of our cultural heritage, we are confident that Garuda Indonesia will continue to be ranked among the world’s best in the years to come,” added Arif.

Spurred on by a strong commitment from the management and employees of Garuda Indonesia to deliver the best service, Garuda Indonesia’s performance continues to earn global recognition. During the “Farnborough Airshow 2012” in London, Garuda was voted “The World’s Best Regional Airline”. During the “Paris Air Show 2013” held in June 2013, Garuda Indonesia was named “The World’s Best Economy Class” by Skytrax, and in 2014 Garuda Indonesia also won the title of “5-Star Airline” from Skytrax. Currently, Garuda Indonesia ranks seventh in the list of “The World’s Best Airlines”.

Through a continuous business transformation program, which focuses especially on fleet development, Garuda Indonesia will operate as many as 185 aircraft by the end of 2015 (including its subsidiary, Citilink).

Since becoming a member of the global airline alliance SkyTeam in March 2014, Garuda Indonesia, together with 19 other SkyTeam members, provides access to an extensive global network with over 16,323 daily flights to 1,052 destinations in 177 countries. In addition, Garuda Indonesia passengers can also enjoy 629 lounges of other SkyTeam member airlines, worldwide.

Paris, June 16, 2015

PT GARUDA INDONESIA (PERSERO) Tbk.

VP CORPORATE COMMUNICATIONS

https://www.garuda-indonesia.com/id...-again-voted-worlds-best-cabin-crew-2015.page


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MANDIRI BANK GETS VISA CHAMPION SECURITY AWARD WITH 8 OTHER BANKS IN ASIA PACIFIC REGION

MANDIRI BANK IS THE BEST IN SOUTH EAST ASIA FOR THIS CATEGORY


Raih Visa Champion Security Award, Keamanan Pembayaran Bank Mandiri Diakui Dunia
Sabtu, 14 Mei 2016 | 11:56 WIB

JAKARTA, KOMPAS.com - Delapan bank terkemuka di wilayah Asia Pasifik menerima penghargaan Visa Champion Security award di Visa Asia Pacific Security Summit yang ke-12.

Penghargaan tersebut merupakan pengakuan atas kepemimpinan dalam manajemen risiko dan efektivitas sistem pembayaran anti-fraud.

PT Bank Mandiri (Persero) Tbk mewakili Asia Tenggara sebagai bank yang menerapkan praktik terbaiknya dalam data dan keamanan pembayaran.

Joe Cunningham, Head of Risk, Visa Asia Pasific, mengatakan dengan semakin banyak konsumen yang berbelanja dan melakukan pembayaran melalui perangkat dan medium digital, Visa percaya bahwa investasi pada teknologi dan produk dengan standard terbaru dapat membantu lembaga keuangan, pedagang, pihak ketiga dan konsumen dalam melawan penipuan.

Menurut dia, pertumbuhan e-commerce dan dompet digital telah mengubah cara konsumen berbelanja. Titik-titik penjualan (point of sales) semakin menjauh dari toko dan mendekat ke ponsel dan perangkat digital lainnya.

"Di saat konsumen bersemangat untuk mencoba pengalaman bertransaksi yang inovatif dengan cara pembayaran baru, maka menjadi tanggung jawab kita sebagai industri untuk menjaga keamanan dan kepercayaan terhadappembayaran elektronik," tambah Cunningham.

Acara tahunan yang diselenggarakan pada 10-12 Mei ini mengumpulkan para ahli untuk membahas inovasi dan perkembangan keamanan pembayaran.

Seiring dengan populernya dompet digital dan pembayaran mobile secara global, lebih dari 400 peserta berkumpul untuk mendengar bagaimana perkembangan perilaku pembelian konsumen bisa membentuk industri perdagangan dan pembayaran di masa mendatang.

Peserta juga membahas perubahan lanskap pembayaran, pentingnya kolaborasi antara organisasi yang sudah mapan dan yang baru masuk ke industri dikarenakan banyaknya jasa pembayaran yang tersedia untuk konsumen, serta dorongan kepada pemerintah untuk menuju masyarakat digital non-tunai.

http://bisniskeuangan.kompas.com/re...Keamanan.Pembayaran.Bank.Mandiri.Diakui.Dunia

 

[somebozo]

About time to throw away remains of socialism and improve on the private sector.

 

[Indos]

About time to throw away remains of socialism and improve on the private sector.

Our private sector is Okay buddy, we need state owned companies to compete with the multinational ones.

State owned companies can also be used to clear the market from any cartel, like currently we try to do in our food industry.

This thread is also meant to show that state own companies can also be efficient.

It is better to have a mix economy than economy that is wholly owned by private corporations like in USA. Better economically, politically, and socially.

 

[tsinga]

Now the ministry is lead by an entrepreneur and not technocrat anymore, usually entrepreneurs has more bold move like happening in our fishing ministry as well. Both are lead by female entrepreneurs. The positive effect has also been felt by our defense industry which mostly state owned

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Indeed this is positive.
Forming a HoldCo for our Public Sector Enterprises has also been identified by Expert Committee's as a Key reform in India. This would drive more efficiency and lead to more corporate behaviour in these state enterprises in addition to driving up value of these Enterprises.

So kudos to Indonesia for going forward on this.

 

[Indos]

Economy in brief: State-owned banks book bigger profits

The Jakarta Post
Jakarta

Posted: Wed, March 11 2015 | 06:03 am

The net profits of the 10 largest banks, both state-owned and private-owned, across the country recorded a 5.18 percent rise to Rp 82.13 trillion ( US$6.32 billion ) in 2014 from Rp 78.09 trillion in the previous year.

The banks are Bank Mandiri, Bank Rakyat Indonesia (BRI), Bank Central Asia (BCA), Bank Negara Indonesia (BNI), Bank CIMB Niaga, Bank Danamon, Bank Permata, Bank Panin, Bank Tabungan Negara (BTN) and Bank International Indonesia ( BII ).

According to data, the net profits of four state-owned lenders Bank Mandiri, BRI, BNI and BTN, are higher than the other six biggest private banks, kompas.com reported on Tuesday.

The four state-run banks recorded Rp 56 trillion in net profits throughout last year, up by 12.07 percent from the Rp 49.97 trillion booked in 2013.

Meanwhile, the private banks saw net profits down by 7.06 percent in 2014 to Rp 26.13 trillion from the Rp 28.12 trillion recorded in the previous period.

In addition, data showed that BRI recorded the highest increase in its net profits last year among state-owned lenders.

BRI booked Rp 24.2 trillion net profits throughout 2014, rising by 14.35 percent from Rp 21.16 trillion in 2013.

Bank Mandiri came next with Rp 19.9 trillion net profits in the 2014 fiscal year from Rp 18.2 trillion in the previous fiscal year. Meanwhile, in the private sector, only BCA and Bank Panin were able to book higher net profits than last year. BCA and Panin recorded 15.7 percent and 4.42 percent growth in profits in 2014, respectively.

http://www.thejakartapost.com/news/...ef-state-owned-banks-book-bigger-profits.html

 

[Indos]

(Wall Street Journal)

“We will wait to see what will happen, because execution [of infrastructure plans] has been quite poor in the past,” said Bharat Joshi, head of Indonesia investments at Aberdeen Asset Management, which manages about $4.5 billion in Indonesia and owns shares in some state-controlled companies.

He said the fund manager is currently investing in state firms that could benefit from infrastructure development through lower logistics costs, for example, but is avoiding companies directly exposed to the process, such as construction firms. “If the infrastructure investment accelerates, that would be a multiplier for more consumption spending,” he said. “But we are not really betting on infrastructure happening.”

Delays in areas such as the acquisition of land are common, and the overall track record for completing construction projects is poor.

Lol, the delay is more because of it is not easy to clear the project area since many people own it. In term of working professionalism, state owned builder (construction firm) have already expand abroad. Typical WSJ reporting.

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Waskita to renovate Masjidil Haram grand mosque in Mecca

Nurfika Osman
The Jakarta Post
Jakarta
Posted: Thu, April 11 2013 | 12:42 pm

Publicly listed construction company PT Waskita Karya ( WSKT ) has been named as one of the main contractors in the renovation and expansion of the Masjidil Haram grand mosque in Mecca, Saudi Arabia, a company executive has said.

Waskita president director M. Choliq said in Jakarta on Wednesday that the company would team up with the Saudi Binladin Group ( SBG ), one of the largest construction companies in Saudi Arabia, to carry out the renovation project which would take between five and 10 years.

“The Masjidil Haram is going to be a long-term project for us. We will renovate the mosque gradually before and after the Haj season because the expansion project must not disturb the pilgrims,” Choliq said on the sidelines of a hearing with the House of Representatives Commission V overseeing infrastructure and transportation. This year, the haj season will fall in October.

He said that Waskita, which is controlled by the Indonesian government, would start the renovation project next month.

Choliq declined to reveal the value of the renovation contract, but he said it was a substantial project and important in helping to strengthen Waskita’s position as a global player.

The Masjidil Haram grand mosque surrounds one of Islam’s holiest sites, the Kaaba.

After the Masjidil Haram project, he said that the company planned to bid for more infrastructure projects in several Asian countries.

Waskita would be working on projects worth Rp 23.5 trillion ( US$2.24 billion ) throughout this year, up by almost Rp 9 trillion from last year, he said.

Apart from Waskita, other state-run construction companies PT Wijaya Karya and PT Pengembang Perumahan are also planning to spread their wings to foreign markets.

Wijaya Karya corporate secretary Natal Argawan said that the firm was vying for new projects in Latin America and Malaysia in the coming years.

“For the Latin American market, we have recently established a team that will study the markets in several countries. We are going to look at the prospects, the risks and the political situation this year before deciding which countries we are going to enter and what projects we will be working on,” Natal said, adding that the firm had yet to set a deadline on when they should expand into Latin America.

The company would not be in a rush to expand their businesses because political and economic conditions could change at any time.

However, Wijaya Karya had recently participated in the bidding process in some projects in Malaysia, he said. “We are going to announce more projects in foreign countries soon,” he said.

The company has just set up a representative office in Myanmar in order to explore business opportunities in the newly emerging economy.

This year alone, the company would work on projects worth Rp 20.7 trillion, an increase of some 26 percent from last year.

Moreover, Pengembang Perumahan president director Bambang Triwibowo said that the company was currently eyeing infrastructure projects in Timor Leste. “This is going to be one of our biggest projects in Timor Leste and we plan to start it this year,” Bambang said, declining to provide details on the project saying that it might affect their plans.

State-owned enterprises ( SOEs ) are starting to move on foreign markets this year in order to widen Indonesia’s business exposure and presence in the international arena.

At the end of March, a delegation of as many as 15 firms including oil and gas firm PT Pertamina, mining firm PT Antam, fertilizer producer PT Pupuk Indonesia, electricity firm PT PLN, telecommunications company PT Telkom and aircraft maintenance company PT GMF Aero Asia explored business opportunities in Myanmar led by Coordinating Economic Minister Hatta Rajasa.

The delegation was also viewed as a form of solidarity because Myanmar, a fellow ASEAN member, has been improving its democratic and human rights records.

As Southeast Asia’s largest economy, Indonesia has the least presence in Myanmar compared to other ASEAN countries such as Thailand, Singapore and Malaysia.

Singapore’s sovereign wealth fund Temasek Holdings, for example, is believed to have invested about $3 billion in Myanmar as of today.

SOE Minister Dahlan Iskan has said that Indonesia would reap many benefits from Myanmar because the country needed oil, gas, and infrastructure.

http://www.thejakartapost.com/news/...novate-masjidil-haram-grand-mosque-mecca.html

One of the sample of their project

Benoa Toll Road (Bali Island)

State owned construction companies consortium (PT Wijaya Karya, PT Hutama Karya, PT Waskita Karya, PT Adhi Karya)

 

[ChineseTiger1986]

Good decision, the SOE is the backbone of your country, and don't let it go down.

 

[Indos]

2016 Indonesia Central Bank SME Supporter Award

The best banks in term of small and medium size enterprise supporter in term of large bank category are hold by Mandiri Bank and BRI. Both are state owned banks and also the first and second largest banks in Indonesia.

For small bank category is won by PT Bank Pensiunan Shariah and Bank Pembangunan Daerah Bali (Bali Local Government Bank)

News is in Indonesian language

Central Bank Website (Bank of Indonesia/BI)

http://www.bi.go.id/id/ruang-media/siaran-pers/Pages/SP_184416.aspx